TRADE FOR THE RIGHT REASONS

Written on the 19 November 2012

TRADE FOR THE RIGHT REASONS

BEFORE heading to Asia, it’s a good idea to work out exactly why your business is going there.

Businesses need to understand the markets they are entering in Asia and how their products or services fit and engage with corporate advisors and governments in each country.

That’s the advice from partners Dennis Lin and Cameron MacMillan (both pictured), from BDO consultancy. They deal with many clients doing business across the Asian region.

“Businesses need to understand what they are going to Asia for: To sell, buy or create a partnership," says MacMillan.

“You cannot treat it as a gold rush and expect opportunities to appear. You must have patience and not bet the house on Asia,” he says.

Lin believes the recent bribery convictions in China of businessmen Stern Hu and Matthew Ng highlight the importance of treading warily when doing business in a foreign country.

He says it can be a mistake to try and act like a local.

“It is easy to get into trouble if one offends a government official," he says.

MacMillan and Lin believe technology and creative industries can grow faster in some Asian markets, where there are not the capital constraints and high labour costs of operating in Australia.

As an example he cites the success enjoyed by a number of Queensland logistics and food testers who were approached by Chinese authorities following a string of tainted food scandals there.

“They were approached because Australia has one of the world’s highest standards of food safety,” he says.

“In Japan there is still talk about the fall-out from the 2011 tsunami and whether food is safe to eat. People often take for granted that our food is safe, but not everyone can.”

The Japanese Government has encouraged entrepreneurs to produce goods, such as wagyu beef and automobiles, outside of Japan for the purpose of importing back to the island.

“Australia can be used as a base to manufacture products for Japanese tastes with traditional quality controls and a perceived quality of being made by Japan. The Japanese could not otherwise create the same volume of wagyu as they do not have the same amount of land. They are now looking at [offshore] rice production,” says Lin.


Latest News

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

TREASURY WINES UNCORKS SWEET $269M PROFIT DESPITE INVENTORY WOES

REVEALING the fruits of its past year of labour, Treasury Wine Estates (ASX: TWE) has posted a 55 per cent increas...

TATTS GROUP POSTS PROFIT AND REVENUE DROP ON FEWER JACKPOTS AND BAD WEATHER FOR RACING

TATTS Group (ASX: TTS) has posted a full year net profit loss of 5.7 percent and a revenue decline of 8.4 per cent as...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter